Jap files raps over IPO inclusion of Coral Reef

The Japanese owner of the defunct Coral Reef Resort in Mactan cries foul over the inclusion of the 36-hectare resort property in the Initial Public Offering (IPO) of Lucio Tan’s Eton Properties Philippines Inc.

In a press conference held yesterday at the Sen Ryu Japanese restaurant in Lahug, Palm Tree Estate Inc. and Bell Air Golf and Country Club chair Kenichi Akimoto said that Eton has breached the rules of the Securities and Exchange Commission, hence they will be lodging a complaint against the company at the Philippine Stocks Exchange and SEC.

Akimoto’s legal counsel Romulo Senining said while the foreclosure of Coral Reef is still under litigation, it cannot be offered publicly to investors, saying it would be dangerous for investors to acquire stocks from Eton, when one of the properties being offered is still being disputed at the Cebu Regional Trial Court.Senining added that although the Supreme Court already granted the Philippine National Bank the right to foreclose the property a few years back, it did not authorized PNB to offer the property to investors while it is still under litigation.

In an earlier report, Erwin de Pedro, assistant vice president for marketing of Eton Properties Philippines Inc., said a formal market study and master planning of Coral Reef Resort, now renamed Eton City Mactan, will start by the third quarter of this year.

Department of Tourism (DOT) chief Joseph Ace Durano said that the Group will develop a mixed-use tourism estate including the establishment of 1,000-room five-star resort, golf course, and condominiums.

“They [Lucio Tan Group] will make the formal announcement within this year,” Durano said in a separate interview.

Despite the persistence of Akimoto to retrieve the property from PNB, Durano said “as far as the government is concerned, the issue is closed already.”

Coral Reef was foreclosed by the Lucio Tan led PNB in September of 2005.

Back in 1997, Palm Tree Estate Inc. and Bell Air Golf and Country Club secured a loan from PNB amounting to P340 million and a second loan worth P80 million for the expansion of the then Coral Reef  resort, which included plans of building condominiums and an exclusive golf club.

However, with the economic crisis that hit the region affecting the Philippine economy really badly. Although approved, PNB reportedly released the loan in tranches which affected the project of Akimoto during that time.

Today, although it is not unknown to him that he is going up against a giant in the Philippine business community, Akimoto is determined to put up a good fight in retrieving his property claiming that the imposed foreclosure was illegal.